How many days prior to settlement can a broker transfer money out of the trust account to the closing attorney?

The correct answer reflects the regulations governing the management of trust accounts in North Carolina real estate transactions. According to the state's real estate commission guidelines, brokers are allowed to withdraw funds from a trust account and transfer them to a closing attorney no more than 10 days prior to settlement. This regulation is designed to ensure transparency and accountability in handling client funds, protecting consumers during the closing process.

By setting this limit, the regulatory framework helps to prevent potential issues related to the mismanagement of funds, ensuring that the transaction proceeds smoothly as expected. This 10-day window also provides a safeguard whereby there is a structured timeframe for any financial reconciliations that may need to occur before the actual settlement takes place, allowing for timely communication between all parties involved.